The Walt Disney Company recorded a net profit of 2.621 billion dollars (2.4 billion euros) during its third fiscal quarter, between April and June of this year, compared to losses of 460 million dollars (421.16 million euros) in the same period of 2023 and a turnover of 23.155 billion (4% more), the company reported in a statement, in which it also announced a new price increase for its popular platform of streaming (streaming) Disney+Pre-tax profit was $3.903 billion, compared with a loss of $134 million in the same period of the previous year.
In the first nine months of its fiscal year, the company headed by Bob Iger recorded a net profit of 2.09 billion dollars, which is almost double (+115.8%) the amount achieved a year earlier, while it earned 68.787 billion dollars, with an increase of 1.67% compared to the 67.657 billion dollars it earned in the same period of the previous fiscal year.
As it did last year, the mouse company will raise the subscription fees for its service streaming in the US on October 17, with a possible increase in Spain. The ad-supported subscription will cost $9.99 per month, up from $7.99 currently, while the ad-free plan will cost $15.99 per month or $159.99 in a single annual payment.
“Our third quarter performance demonstrates the progress we have made on our four strategic priorities across our creative studios, streaming, sports and experiences businesses,” Iger, chief executive of The Walt Disney Company, said in a statement.
However, the weakness of its famous theme parks countered the first profit in its history in streaming. Disney’s U.S. theme parks, hit by rising costs and weak demand, missed Wall Street estimates for sales and profit. The company said its Disneyland Paris park suffered a decline in summer travel due to the Olympics, and pointed to some “cyclical weakness in China.”
Attendance pressure will persist for “the next several quarters,” the company said Wednesday, after previously predicting a rebound in the final months of fiscal 2024. Disney is now forecasting a single-digit decline in fiscal fourth-quarter profit. The company is “actively monitoring attendance and guest spending, and aggressively managing our cost base.”
Hugh Johnston, the company’s chief financial officer, said revenue from the parks division rose 2% in the quarter, so it continues to grow. In an interview with Bloomberg TVexplained that “lower-income consumers are reducing their time in the parks a bit, and higher-income consumers are traveling internationally.” The company values the change as “a few quarters of slight disruption in the numbers.” Revenue for the parks division will remain flat in the fourth quarter, Johnston said on a call with analysts.
In July, rival Comcast Corp. reported quarterly revenue that missed analysts’ estimates, dragged down in part by a slowdown at its Universal Studios theme parks. Analysts say demand is starting to normalize after a post-pandemic rebound.
“A slowdown at Disney parks was expected, but the magnitude of the decline is concerning and suggests the drop in demand may not be transitory,” said Geetha Ranganathan, an analyst at Bloomberg Intelligence. “The streaminghowever, was a bright spot, with profitability of the combined platforms above expectations.” Shares fell 3% to $87.28 in early New York trading.
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